scholarly journals Extreme Climate Shocks and Green Agricultural Development: Evidence from the 2008 Snow Disaster in China

2021 ◽  
Vol 18 (22) ◽  
pp. 12055
Author(s):  
Litao Feng ◽  
Zhuo Li ◽  
Zhihui Zhao
Keyword(s):  
Agricultural Development ◽  
Policy Implications ◽  
Weighting Method ◽  
Extreme Climate ◽  
Unit Value ◽  
Long Run ◽  
The Difference ◽  
Agricultural Yields ◽  
Climate Shocks

Extreme climate shocks cause agricultural yield reductions and increase long-term climate risk, altering farmers’ long-term production decisions and affecting green agricultural development (GAD). We take the 2008 snow disaster in China as an extreme climate shock, calculate the GAD index by the entropy weighting method, and use the difference-in-difference method to study the extreme climate shock’s impact on GAD. The results show that: (1) Extreme climate shocks are detrimental to GAD, with the snow disaster decreasing China’s GAD level by 3.07%. (2) The impacts of extreme climate shocks are heterogeneous across climate and economic zones, with greater impact in humid and developed regions. (3) Extreme climate shocks affect GAD mainly by reducing farmers’ willingness to cultivate, and increasing energy consumption, fertilizer, and pesticide input. (4) Extreme climate shocks do not reduce agricultural yields in the long run. Still, they reduce the total value of agricultural production and decrease the quality of agricultural products expressed in terms of unit value. The findings of this study have policy implications for developing countries in coping with extreme climate shocks and promoting GAD.

scholarly journals Effectiveness of Irrigation Access on Sticky Rice Productivity: Evidence from Lao PDR

2019 ◽  
Vol 11 (20) ◽  
pp. 5839 ◽  
Author(s):  
Bouasone Sengsourivong ◽  
Masaru Ichihashi
Keyword(s):  
Irrigation System ◽  
Lao Pdr ◽  
Policy Implications ◽  
Total Production ◽  
Rice Productivity ◽  
Monitoring Procedure ◽  
Local Farmer ◽  
The Difference ◽  
The Impact

This study estimates the impact of irrigation on household sticky rice productivity in Lao People’s Democratic Republic (Lao PDR) by applying propensity score matching (PSM) and the difference-in-differences (DID) method. This paper utilizes panel data from the Lao Expenditure and Consumption Survey (LECS) from 2003 to 2013. The results show that the average sales value and total production of sticky rice for irrigated households is greater than those for non-irrigated households by around 36 to 38% per season. Moreover, irrigated households experience improved sticky rice productivity of approximately 2.44 tons per hectare, per season, compared to non-irrigated households. In particular, compared to households with access to irrigation in one period of the surveys, households with access to irrigation in two periods of the surveys have nearly double the sticky rice productivity. Therefore, long-term access to irrigation is more effective for sticky rice productivity. However, we cannot find any evidence to support the impact of irrigation on household consumption. Some policy implications that can be derived from this research are that farmers should be intensively promoted to make the most use of irrigation, development of irrigation system is highly needed, and to ensure effectiveness of irrigation utilization local farmer involvement in monitoring procedure of irrigation is necessary.

scholarly journals Innovation and Sustainable Development: Does Aid and Political Instability Impede Innovation?

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402097302
Author(s):  
Muhammad Athar Nadeem ◽  
Zhiying Liu ◽  
Haji Suleman Ali ◽  
Amna Younis ◽  
Muhammad Bilal ◽  
...  
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Political Stability ◽  
Policy Implications ◽  
Innovation Activities ◽  
Adverse Impacts ◽  
Long Run ◽  
Market Shares ◽  
Auto Regressive

Sound innovation capabilities help the nations not only to capture bigger market shares but also to sustain long-term economic growth. Innovation is of vital importance at all stages of a country’s development as it promotes productivity, value creation, employment, economic growth, and sustainability. Several factors can affect the innovation activities of a country. For example, peaceful and stable environment, effective macroeconomic designs, sound institutional quality, and efficient utilization of resources are of great significance for a country to nourish economic, business, and market activities. Applying the Auto Regressive Distributive Lag approach to cointegration, this study investigates the short- and long-run impacts of aid, political instability, and terrorism upon the innovation of a laggard economy, namely, Pakistan. Our findings reveal that aid, political instability, and terrorism all have adverse impacts on innovation. Results across robustness checks remain the same. This study is of strong policy implications for policymakers, governments and opposition parties, and security and intelligence agencies to develop sound macroeconomic designs and policies, bring harmony for political stability, and curb terrorism, respectively.

Tourism, economic growth, energy consumption, and CO2 emissions in China

2020 ◽  
pp. 135481662091845 ◽  
Author(s):  
Jiekuan Zhang ◽  
Yan Zhang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Policy Implications ◽  
Long Run ◽  
Cointegration Tests ◽  
Short Run ◽  
Vecm Granger Causality ◽  
Growth Energy

In this article, we for the first time applied the vector error correction model (VECM) Granger causality approach to investigate the short-run and long-run causal relationships among tourism, economic growth, energy consumption, and carbon dioxide (CO2) emissions for 30 Chinese provinces over the period 2000–2017. The results implied that the analyzed variables became stationary at their first differences. The panel cointegration tests indicated the presence of a long-term equilibrium relationship among these four analyzed variables. Results from the VECM Granger causality tests suggested that the bidirectional short-term causalities were statistically confirmed between gross domestic product (GDP) and tourism. Additionally, we found that some unidirectional short-run causalities existed running from energy consumption to other analyzed variables and bidirectional long-run causalities existed between CO2 emissions and GDP, CO2 emissions and tourism, and GDP and tourism. Moreover, we also found the existence of unidirectional long-term causalities running from energy consumption to other analyzed variables. Based on these findings, we highlighted some key policy implications to develop China’s sustainable tourism.

scholarly journals Long-Run Relationship Between Economic Development and International Tourism in Pakistan

2020 ◽  
Vol 6 (2) ◽  
pp. 329-344
Author(s):  
Muhammad Asif Khan ◽  
Ghulam Mujtaba Chaudhary ◽  
Khalid Latif ◽  
Naveed Ahmed
Keyword(s):  
Economic Development ◽  
Policy Implications ◽  
International Tourism ◽  
Annual Data ◽  
Short Term ◽  
Stock Market Development ◽  
Development Indicators ◽  
Distributed Lag ◽  
Long Run

This article examines the link between economic development and international tourism in the context of Pakistan. The study uses Autoregressive Distributed Lag tests (ARDL) for the long-term relationship; the short-term relationship is examined with Error Correction model, and the VECM-Granger causality to determine the direction of the causal flow. The study uses annual data from the CEIC and World Bank databases for the period 1990-2017. The novelty stems from the perspective that there is no formal evidence on long-run dynamics between economic development indicators and international tourism from Pakistan. It contributes to the existing literature on this vital phenomenon. The empirical results document the long-term and short-term association between the variables. We also find a two-way causal flow between economic development and tourism. In addition, it offers policy implications for focusing on three economic dimensions, e.g. economic development, financial development, and stock market development, which subsequently attracts international tourism. Intuitively, promulgates National culture and image across borders and strengthens the National Treasury as well.

scholarly journals Is agriculture an engine of economic reconstruction and development in the case of the Republic of Burundi?

2021 ◽  
Vol 905 (1) ◽  
pp. 012071
Author(s):  
J B Aboyitungiye ◽  
D Prasetyani
Keyword(s):  
Economic Growth ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Arable Land ◽  
Value Added ◽  
World Population ◽  
Long Run ◽  
Ardl Approach ◽  
The Republic

Abstract Despite its importance for the economy, the agricultural sector faces many constraints that hamper its growth. With the increase in the world population and the demand for food production, farmers need to produce more with less arable land. This study used the ARDL approach to model the long-term and short-term dynamics and proposed examining the agricultural sector’s contribution to Burundi’s economic growth. Econometric estimations revealed that the gross domestic product per capita, agricultural, and exports (value-added) have long-run relationships but at different levels. The study, therefore, revealed that inflation persists in the short and long term. The consumer price of agricultural products reduces the country’s economic growth. Major adjustments in agricultural, environmental, and macroeconomic policy at national levels will have to be made to create the conditions for sustainable agricultural development.

Revisiting Post-Downgrade Stock Underperformance

2016 ◽  
Vol 32 (2) ◽  
pp. 271-299 ◽  
Author(s):  
Alfred Zhu Liu ◽  
Le Sun
Keyword(s):  
Stock Returns ◽  
Default Risk ◽  
Recovery Effect ◽  
Bond Rating ◽  
Early Signal ◽  
Long Run ◽  
The Difference ◽  
New Evidence ◽  
Rating Downgrades

Prior research documents significant negative long-term stock returns following bond-rating downgrades. Some downgraded firms are placed on credit watches before downgrades, and we find that the post-downgrade stock underperformance of such firms is significantly reduced. We explore two explanations for the difference in post-downgrade stock performance that are not mutually exclusive: (a) a credit watch placement provides an early signal of the subsequent rating downgrade and gives investors more time to better understand the information content of the downgrade (the early-disclosure effect), and (b) a credit watch placement induces better recovery from credit deterioration for the downgraded firm in the long run (the recovery effect). We find that firms receiving watch-preceded downgrades show better improvements in operating profitability, financial leverage, and overall default risk, and are less likely to be further downgraded in future periods, compared with firms that are directly downgraded. Our findings suggest that the recovery effect is important in explaining downgraded firms’ performance in the long run and provide new evidence in support of the premise in the recent literature that credit watches can induce on-watch firms’ efforts to restore deteriorated credit quality.

scholarly journals Do coffee exports have impact on long-term economic growth of countries?

2019 ◽  
Vol 65 (No. 8) ◽  
pp. 385-393
Author(s):  
Theodore Murindahabi ◽  
Qiang Li ◽  
Eric Nisingizwe ◽  
E.M.B.P. Ekanayake
Keyword(s):  
Economic Growth ◽  
Open Economy ◽  
Policy Implications ◽  
Pooled Mean Group ◽  
Long Run ◽  
Auto Regressive ◽  
Coffee Sector ◽  
The Impact ◽  
Positive Effect

The present paper aims to investigate the impact of coffee exports on long-term economic growth in an open economy for 32 countries exporting coffee over the period of 1994–2013. The study applied a dynamic panel Auto-Regressive Distributive Lag (ARDL) modelling approach with estimators. All variables involved in the specified model were found to be stationary of order I (1) at a first difference. The Pooled Mean-Group (PMG) long-run results suggest the presence of a significant positive effect of coffee exports on economic growth. The empirical findings of the study suggest policy implications, promoting the coffee sector to boost the countries’ economy.

scholarly journals Ambiguity, Nominal Bond Yields, and Real Bond Yields

2020 ◽  
Vol 2 (2) ◽  
pp. 177-192 ◽  
Author(s):  
Guihai Zhao
Keyword(s):  
Risk Premium ◽  
Bond Yields ◽  
Case Scenario ◽  
Worst Case ◽  
Inflation Risk ◽  
Expectations Hypothesis ◽  
Long Run ◽  
Short Run ◽  
The Difference

This paper presents an equilibrium bond-pricing model that jointly explains the upward-sloping nominal and real yield curves and the violation of the expectations hypothesis. Instead of relying on the inflation risk premium, the ambiguity-averse agent faces different amounts of Knightian uncertainty in the long run versus the short run; hence, the model-implied nominal and real short rate expectations are upward sloping under the agent’s worst-case equilibrium beliefs. The expectations hypothesis roughly holds under investors’ worst-case beliefs. The difference between the worst-case scenario and the true distribution makes realized excess returns on long-term bonds predictable. (JEL D81, D84, E23, E31, E43, E44, G12)

scholarly journals Knowledge, Input-Output Complexity and the Notion of Sustainability

2019 ◽  
Vol 10 (4) ◽  
pp. 1-10
Author(s):  
Urban Sušnik ◽  
Andrej Sušjan ◽  
Nevenka Hrovatin
Keyword(s):  
Income Distribution ◽  
Structural Changes ◽  
Social Issues ◽  
Division Of Labour ◽  
Policy Implications ◽  
Input Output ◽  
Knowledge Based ◽  
Long Run ◽  
The One

Abstract The paper attempts to synthesize the analytical nucleus of classical political economy and modern ecological economics. In essence this means making a connection between social issues of income distribution, accumulation of capital and economic growth with biophysical limits to economic development. We first model a simple growing system of production and explore its potential to maintain sustainability when using a single natural resource. Taking into consideration the laws of thermodynamics we show that the long-term sustainability of such a simple system is unlikely. When the model is extended to incorporate a wider range of inputs used and commodities produced, such complexity accompanied by knowledge-based structural changes provides necessary conditions for the long-run sustainability of a growing economic system. Since input-output complexity results from the division of labour on the one hand and from intentional R&D policies on the other, this conclusion also brings forward some policy implications regarding income distribution in the society.

Eco-Effective Management: An Empirical Link between Firm Value and Corporate Sustainability

2011 ◽  
Vol 11 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Royce D. Burnett ◽  
Christopher J. Skousen ◽  
Charlotte J. Wright
Keyword(s):  
Firm Value ◽  
Management Practices ◽  
Corporate Sustainability ◽  
Data Availability ◽  
Policy Implications ◽  
Effective Management ◽  
Current Accounting ◽  
Long Run ◽  
Environmental Goals

ABSTRACT Achieving corporate sustainability requires the implementation of management practices that create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social developments. Corporations that are sustainable create value that, in the long run, exceeds their environmental impact (Figge and Hahn 2004). We examine the extent to which investors incrementally value the long-run benefits accruing from adoption of eco-effective management. We posit that adoption of eco-effective management results in increases in firms' market valuation, and that those increases persist beyond the current accounting period. Our results support this hypothesis. This study has broad public policy implications as accountants, managers, and government policymakers shift their focus toward sustainability and rely on market-based mechanisms to further environmental goals. Data Availability: All data are available from public sources.

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